THE International Monetary Fund (IMF), DHL and Deloitte have affirmed
that Small and Medium Enterprises (SMEs) hold the ace to Africa’s
economic growth.
IMF had predicted that economic growth in Sub-Saharan Africa this year would2014 be slightly higher than that of 2013 with about six per cent and hinged this optimism on the more than one billion consumers on the continent, who spend an estimated $600 billion yearly, a surging middle class, which is reckoned to be the fastest growing in the world.
The Managing Director of DHL Express, Charles Brewer further affirmed that his organisation was poised to harnessing the opportunities in the continent for the SMEs with the global market place, as they are clearly the growth engine for Africa and the critical driver for sustainable economic growth.
Deloitte, on its part, asserted that Africa’s middle class has tripled over the last 30 years, and that the current trajectory suggests that the African middle class would grow to 1.1 billion in 2060.
According to Deloitte, “as African economies are some of the fastest growing in the world, the outlook for the continent is very positive.
“Manufacturing, though has potential to go on a large scale, is still somewhat embryonic in Africa and as such, there is a definite opportunity for SMEs to fill the gap, which are not being serviced by these large global companies. A growing SME base will create hundreds and thousands of new jobs for the growth yearning continent.”
Brewer, pointed out that: “the Institute of International Finance had reported that due to many countries in Sub-Saharan Africa struggling with controlling price pressures, central banks have tended to keep monetary policy fairly tight. Despite this challenge, the SMEs are expected to create growth opportunities through increased consumer spending power and expansion into untapped markets.”
Corroborating the prediction on SMEs sector’s potential, an online report stated that the growing internet user penetration in Africa also provides a sizeable opportunity for SMEs and as Africa continues to adopt e-commerce as a way of life, businesses are able to leverage this online market and thus reduces traditional customer acquisition costs.
Even the findings of the 2013 National Small Business Survey, conducted by the National Small Business Chamber (NSBC), also buttressed SMEs’ positive future. It revealed that the key needs of SMEs include expanding customer base, increasing sales and going global.
“Accessing new markets by trading across borders is the key to growth and competitiveness and the key driver for small and medium enterprises in South Africa,” noted Mike Anderson, NSBC founder and CEO.
Commenting on this, Brewer said that the more an SME could tap into global opportunities the more it can look forward to global expansion and also the better the chances for growth.
He said: “When it comes to global opportunities the key to success for many SMEs is knowledge. Knowing which markets to target, how to market products, how to identify customers, how to get paid and how to ship globally. We have 25,000 SMEs, who work with us across Africa and every day we carefully try to understand their needs better and help them to go global. DHL is well-positioned to partnering with African SMEs and helping them to connect with the world.”
Source Guardiannews
IMF had predicted that economic growth in Sub-Saharan Africa this year would2014 be slightly higher than that of 2013 with about six per cent and hinged this optimism on the more than one billion consumers on the continent, who spend an estimated $600 billion yearly, a surging middle class, which is reckoned to be the fastest growing in the world.
The Managing Director of DHL Express, Charles Brewer further affirmed that his organisation was poised to harnessing the opportunities in the continent for the SMEs with the global market place, as they are clearly the growth engine for Africa and the critical driver for sustainable economic growth.
Deloitte, on its part, asserted that Africa’s middle class has tripled over the last 30 years, and that the current trajectory suggests that the African middle class would grow to 1.1 billion in 2060.
According to Deloitte, “as African economies are some of the fastest growing in the world, the outlook for the continent is very positive.
“Manufacturing, though has potential to go on a large scale, is still somewhat embryonic in Africa and as such, there is a definite opportunity for SMEs to fill the gap, which are not being serviced by these large global companies. A growing SME base will create hundreds and thousands of new jobs for the growth yearning continent.”
Brewer, pointed out that: “the Institute of International Finance had reported that due to many countries in Sub-Saharan Africa struggling with controlling price pressures, central banks have tended to keep monetary policy fairly tight. Despite this challenge, the SMEs are expected to create growth opportunities through increased consumer spending power and expansion into untapped markets.”
Corroborating the prediction on SMEs sector’s potential, an online report stated that the growing internet user penetration in Africa also provides a sizeable opportunity for SMEs and as Africa continues to adopt e-commerce as a way of life, businesses are able to leverage this online market and thus reduces traditional customer acquisition costs.
Even the findings of the 2013 National Small Business Survey, conducted by the National Small Business Chamber (NSBC), also buttressed SMEs’ positive future. It revealed that the key needs of SMEs include expanding customer base, increasing sales and going global.
“Accessing new markets by trading across borders is the key to growth and competitiveness and the key driver for small and medium enterprises in South Africa,” noted Mike Anderson, NSBC founder and CEO.
Commenting on this, Brewer said that the more an SME could tap into global opportunities the more it can look forward to global expansion and also the better the chances for growth.
He said: “When it comes to global opportunities the key to success for many SMEs is knowledge. Knowing which markets to target, how to market products, how to identify customers, how to get paid and how to ship globally. We have 25,000 SMEs, who work with us across Africa and every day we carefully try to understand their needs better and help them to go global. DHL is well-positioned to partnering with African SMEs and helping them to connect with the world.”
Source Guardiannews